I want to add my brute force contribution to this topic. I wrote a very simple program, whose main aim is to turn Kindle Touch into a Non-Touch .

It just grabs all X events – keyboard (read One Key) and touchscreen input, so that the events don't reach other apps. It is just a proof of concept which may be further developed or used for some other project.

I adjusted the program to what was asked for in one of the previous posts in this thread. It disables touchscreen input and turns home button events into touchscreen events, so that home button may be used to turn pages in reader application.
When started program waits for pressing home button. When you press the home button, the touchscreen becomes inactive. There is only small 50×50 pixels active area in the upper right corner of the screen. Touching this area turns the program off.
Home button presses are translated into touchscreen clicks. Short button press simulates click on the right side of the screen – forward page turn. Long button press imitates click on the left side of the screen – backward page turn. Duration of the long press may be adjusted on command line.

I also prepared a GUI Launcher extension for those who don't want to mess around with command line. To use for reading a book start the extension from extensions folder. Then click on the book you want to read and when it opens just press home button. From this moment home button will work as described above and touchscreen will not work. To turn it off you will need to click in the upper right corner of the screen.